Loss from operations increased in the second quarter of 2012 to $8.1
million from $5.8 million in the second quarter of 2011, and to $13.8
million for the six months ended June 30, 2012 compared to $11.7
million for the comparable period in 2011. This increase in loss from
operations for the three and six months ended June 30, 2012 compared to
prior year periods was primarily the result of increased research and
development expenses due to increased development activity for
Oncothyreon's product candidates.

Net loss for the three months ended June 30, 2012 was $8.7 million or
$0.15 per basic and diluted share, compared with a net loss of $34.0
million, or $0.91 per basic and diluted share, for the comparable
period in 2011. Oncothyreon reported a net income of $1.0 million or
$0.02 per basic and $0.28 loss per diluted share for the six months
ended June 30, 2012, compared with a net loss of $41.1 million or $1.22
per basic and diluted share for the comparable period in 2011. The
decrease in net loss for the three months ended June 30, 2012 compared
to the prior year period was primarily attributable to non-cash expense
as a result of the change in fair value of warrant liability in the
prior year offset by increases in research and development and general
and administrative expenses. The increase in net income for the six
months ended June 30, 2012 compared to the prior year period net loss
was primarily attributable to non-cash income of $15.3 million as a
result of the change in fair value of warrant liability partially
offset by increases in research and development expenses and decreases
in general and administrative expenses.

As of June 30, 2012, Oncothyreon's cash, cash equivalents and
investments were $97.9 million, compared to $66.4 million at December
31, 2011. The $31.5 million increase was attributable to the closing of
an April underwritten public offering of 13,512,500 shares of
Oncothyreon common stock which generated net proceeds of approximately
$50.3 million. This increase was offset in part by $13.2 million cash
used in operations, $4.1 million cash used in repayment in full of the
initial term loan with General Electric Capital Corporation (GECC),
$0.9 million cash used for principal payments on notes payable, and
$0.7 million cash used in capital expenditures during the six months
ending June 30, 2012.

Financial Guidance

Oncothyreon believes the following financial guidance to be correct as
of the date provided. Oncothyreon is providing this guidance as a
convenience to investors and assumes no obligation to update it.

Expenses in 2012 are expected to be higher when compared to 2011,
primarily as a result of the more advanced clinical development of
PX-866 and the ongoing Phase 1 clinical trial of ONT-10. Oncothyreon
currently expects cash used in operations in 2012 to be between
approximately $30.0 million and approximately $33.0 million. This
guidance excludes $4.1 million cash used to repay the GECC term loan on
June 30, 2012. As a result, Oncothyreon estimates that its existing
cash, cash equivalents and investments will be sufficient to fund
operations for at least the next 12 months.

Conference Call and Webcast

Oncothyreon will conduct a conference call today, August 9, 2012 at 4:30
p.m. Eastern time (1:30 p.m. Pacific time) to discuss its second
quarter 2012 financial results, provide a review of its pipeline of
products in development and discuss amendments to its previously-filed
Annual Report on Form 10-K for the year ended December 31, 2011 and
Quarterly Report for the period ended March 31, 2012 to correct
calculations of fully-diluted earnings per share for certain periods.
The corrections will have no impact on Oncothyreon's consolidated
balance sheets, net income (loss), basic earnings (loss) per share, or
its consolidated statements of cash flows or stockholders' equity for
any reported period. To participate in the call by telephone, please
dial (877) 280-7291 (United States) or (707) 287-9361 (International).
In addition, the call will be webcast live and can be accessed on the
"Events" page of the "News & Events" section of Oncothyreon's website
at www.oncothyreon.com. An archive of the webcast will be available after completion of the
discussion and will be posted on Oncothyreon's website.

About Oncothyreon

Oncothyreon is a biotechnology company specializing in the development
of innovative therapeutic products for the treatment of cancer.
Oncothyreon's goal is to develop and commercialize novel synthetic
vaccines and targeted small molecules that have the potential to
improve the lives and outcomes of cancer patients. For more
information, visit www.oncothyreon.com.

Forward-Looking Statements

In order to provide Oncothyreon's investors with an understanding of its
current results and future prospects, this release may contain
statements that are forward-looking. Any statements contained in this
press release that are not statements of historical fact may be deemed
to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will," "intends," "potential,"
"possible" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements include
our expectations regarding future expenses, clinical development
activities and the use and adequacy of cash resources.

Forward-looking statements involve risks and uncertainties related to
our business and the general economic environment, many beyond our
control. These risks, uncertainties and other factors could cause our
actual results to differ materially from those projected in
forward-looking statements, including the risks associated with the
costs and expenses of developing our product candidates, the adequacy
of financing and cash, cash equivalents and investments, changes in
general accounting policies, general economic factors, achievement of
the results we anticipate from our clinical trials with our products
and our ability to adequately obtain and protect our intellectual
property rights. Although we believe that the forward-looking
statements contained herein are reasonable, we can give no assurance
that our expectations are correct. All forward-looking statements are
expressly qualified in their entirety by this cautionary statement. For
a detailed description of our risks and uncertainties, you are
encouraged to review the official corporate documents filed with the
securities regulators in the United States on U.S. EDGAR and in Canada
on SEDAR. Oncothyreon does not undertake any obligation to publicly
update its forward-looking statements based on events or circumstances
after the date hereof.